green economy In Latin America and the Caribbean

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green economy In Latin America and the Caribbean ( green-economy-in-latin-america-and-caribbean )

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The vision of the green economy SP/Di No 01-12 in Latin America and the Caribbean VI. CONCLUSIONS 49 In this paper, a review has been made of the concepts of green economy and green growth. The UNEP has found that a green economy values and invests in the natural capital to produce the same level of growth and employment as a brown economy, with better performance in the medium and long terms and significantly improved environmental and social benefits. In turn, the OECD focuses on the concept of green growth as a new form of production for sustainable economic growth, while maintaining the standards of living achieved. By comparing these definitions, it could be inferred that both of them are comprehensive concepts and share the same theoretical and factual foundations. Nevertheless, green growth puts emphasis on incentives and new growth sources by means of innovation, productivity, new markets, confidence and stability, whereas green economy prioritizes the government role, the regulatory and legal framework, the push of both private and public investment and its effects on some sectors. Furthermore, an analysis is made of the concept of redistributive green economy as a mechanism or instrument to attain sustainable development. The Permanent Secretariat of SELA just seeks to provide the LAC experience after decades of analysis on the causes of growth and its redistributive effects. Whereas LAC is the most unequal region in the world, SELA thinks that going towards a green economy is not enough. This process should take place in such a way that the inequity gap can be bridged. In this regard, the green economy should focus on economic imbalances concerning the access and opportunities for LAC countries. In order to address such imbalances and lags in LAC, SELA is keenly aware that moving towards a green economy is not an easy task. Therefore, the involvement of the public and private sectors is requisite and necessary to make substantial investments. It is very likely that such investments, in addition to the sources of technical and economic cooperation, will have to be procured overseas. Furthermore, a set of public policies are needed to embolden the transition but also to dampen any adjustments arising therefrom. The passage from a coal-based economy to a green economy will not be overnight. This process requires substantial investments, as it means the change of production and consumption patterns. The process also requires the State direct involvement, where public policies play a key role, particularly tax, regulatory and financing policies. The State should make policies and programmes able to prevent any severe mismatches in the labour market on the way to new means of production. In this connection, the State is set to provide mechanisms for training of the labour force and reconversion of production in the countryside, fishery, industry and several service sectors. Without shadow of a doubt, LAC counts on an energy matrix able to become a matrix of renewable, clean energy sources, yet investments are dearly needed. Certainly, nowadays a carbon-based energy prevails; that is, oil, natural gas and coal which are considerable CO2 generators. As a matter of fact, in five LAC countries the primary energy supply is entirely renewable, namely: Grenada, Guyana, Haiti, Panama and Paraguay. As regards green energy, Paraguay, Costa Rica, Salvador, Panama and Uruguay boast a supply higher than 30% of green, renewable energy sources. The challenge lies on replacing the carbon-based energy matrix with an energy matrix composed of renewable energy sources. Apparently, some countries have made it. The region counts on the potential to turn its carbon-based energy matrix into a green energy matrix if it is to become a green economy with state-of-the-art technologies and novel means of production. The carbon-based economy is reaching its limit and its effects

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